Moody's downgrades Egypt, on review for further downgrade

Moody's Investors Service on Wednesday said it downgraded Egypt's government bond ratings by one notch to B2 from B1, citing the unsettled political situation in the country for undermining investor confidence. Moody's also said Egypt's government bond ratings were on review for further downgrade, and said it believes that without financial support the central bank of Egypt will find it increasingly difficult to maintain adequate international liquidity in the months or years ahead. The ratings agency said pressure on Egypt's balance of payments from domestic political turmoil will be further compounded by the economic downturn in Europe.